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Legislation

An illustration of reporter Courtney Vinopal's headshot.

Courtney Vinopal

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Massachusetts employers are required to post pay ranges for open roles starting Oct. 29.

The requirement stems from a bill that was first passed by the Massachusetts legislature and signed into law by Gov. Maura Healey in July 2024. The legislation builds on the state’s Equal Pay Act, and seeks to help close gender and racial wage gaps in the state.

How Massachusetts employers are affected by this law. 

The pay transparency provision of the Massachusetts law applies to employers with 25 or more employees who primarily work in the state, including those who are remote.

These businesses must now include a “good faith” annual salary or hourly wage range that they expect to pay for the positions they advertise. From Oct. 29 onward, employees may also request the pay range for the position they currently hold; the law bars employers from retaliating against workers for doing so. They’re also entitled to know the estimated pay range if they’re applying for a promotion or transfer.

Employers with 100 or more employees who submit EEO 

 to the Equal Employment Opportunity Commission must now share these with Massachusetts’s Executive Office of Labor and Workforce Development, as well. This provision took effect in February.

Where the state stands on pay transparency. 

More than a dozen states now mandate that employers include salary ranges in job postings, which has 

 to adopt this practice, even if they’re not in a jurisdiction that requires it.

Indeed data indicates many Massachusetts employers are well on their way to complying with the state’s law—more than one-half (53%) of Massachusetts job postings on the career site included salary information as of February 2025.

Whether the law will fulfill its stated goal of closing race- and gender-based pay gaps remains an open question in Massachusetts and beyond. Nationwide, women still earn a median salary that’s lower than what men earn—a difference that 

 over the past two years. And while some research indicates pay transparency laws in states like Colorado have helped narrow this gap, advocates 

 there are larger structural factors at play that businesses need to address.

Nevertheless, many HR teams now see pay transparency as a 

, a point echoed by the Massachusetts attorney general’s office in its 

 on the subject: “Beyond ensuring that workplaces in the Commonwealth are more equitable, the Pay Transparency Act will help strengthen the Massachusetts economy and its competitiveness by attracting and retaining the best talent,” the office posits.

Legislative Lowdown recurring feature illustration

Massachusetts’s pay transparency law takes effect Oct. 29

The requirement applies to businesses with 25 or more employees whose primary work location is in Massachusetts.

Massachusetts employers are now required to share salary ranges 

Adam DeRose

California Gov. Gavin Newsom made headlines Monday, signing landmark legislation into law to govern the development of frontier AI technology and mitigate risk. But the Golden State this week also began enforcing new AI regulations related to automated decision making systems (ADS) for all employers in the state.

Newsom signed the Frontier Artificial Intelligence Act, a first-of-its-kind law that oversees the development of major AI technology systems, requiring companies like OpenAI and Anthropic to disclose their safety measures and report any risks associated with their tech.

The measure also strengthens whistleblower protections for workers at these companies against retaliation for flagging issues of potential or apparent risk.

“California has proven that we can establish regulations to protect our communities while also ensuring that the growing AI industry continues to thrive. This legislation strikes that balance,” the governor said 

 While the signature new law in California doesn’t touch on the work of HR pros like yourself, other regs do. The new law isn’t the only major AI regulation in the state addressing the burgeoning technology as it’s deployed in homes and businesses across Cali and the rest of the country.

Taking effect Oct. 1, the state’s amended Fair Employment and Housing Act (FEHA) now also prohibits businesses in California from using ADS that discriminate against their applicants or employees based on protected statuses.

The changes require employers to conduct specific record-keeping practices related to uses of any ADS, systems that use “artificial intelligence, machine-learning, algorithms, statistics, and/or other data processing techniques” to aid in decisions.

“One of the things that I’m telling my clients, and really starting to get out there, is that you’re already using AI, and chances are you’re exposing yourself to risk,” said Wende Knapp, who leads the employment law practice group with the Rochester, NY-based firm Woods Oviatt Gillman. Knapp’s practice closely aligns with an in-house counsel role for clients.

Conducting bias audits can help businesses mitigate risk, and the measure outlines audits and record-keeping as possible affirmative defenses if properly executed.

“What this regulation does in a nutshell, it really forces employers to inventory all the AI tools that they’re using in HR. So take a deep look, understand what type of technology they’re using,” Knapp said.

The rule also outlines protections for those who require religious or disability accommodations.

 The California Privacy Protection Agency (CCPA) in August 

 a separate set of regs aimed at the same sorts of tools—this body refers to these AI-powered decision making platforms as automated decision-making tools (ADMT).

“They don’t call it ADS, they call it ADMT, but it’s the same thing. [CCPA board members] talk about the processing of personal information, and so that’s their entry point into this,” said Niloy Ray, a shareholder at employment and labor law firm Littler.

These regulations update the state’s consumer privacy law to make sure that these tools, when used in employment decisions, have a detailed risk assessment and notice of use, and that opt-out rights are observed, according to an 

“If both of these sets of regulations aren’t challenged, and I’m not sure that they will be,” Ray said. “Then California employers will have to look closely at CCPA to see if their particular AI tool or use falls within it, and if so, they’ll have to do these things.” These same employers will also need to make sure any of these systems adhere to the California’s Fair Employment and Housing Act revisions via bias auditing and records keeping.

California lawmakers are leading on AI legislation and regulation

 Newsom signs landmark law, but other statewide regulations will impact California employers.

The Trump administration recently moved to curtail the H-1B visa program, which allows companies to employ highly-skilled workers from other countries when they can’t obtain such talent in the US.

As of Sept. 21, the administration is imposing a $100,000 fee on new H-1B visa petitions, according to a 

 issued on Sept. 19. The Department of Labor also launched a program to target companies that aren’t in compliance with laws regarding H-1B employment.

This crackdown seems likely to complicate the recruitment process for employers that rely heavily on foreign workers through the H-1B visa program.

What HR should know about H-1B visa fees. 

Under the new policy, any H-1B visa petitions submitted after 12:01 a.m. ET on Sept. 21 will require a one-time, $100,000 payment, according to 

 from US Citizenship and Immigration Services (USCIS). The fee requirement doesn’t apply to H-1B renewals or H-1B petitions that have already been filed, and doesn’t restrict current H-1B visa holders from traveling in or outside of the US.

In his proclamation, President Donald Trump argued that employers take advantage of the H-1B visa program to hire highly skilled workers at a lower cost than they would pay for American workers with a similar profile, though the H-1B program requires workers to be paid equally to their US colleagues in the same position, not less.

“It is therefore necessary to impose higher costs on companies seeking to use the H-1B program in order to address the abuse of that program while still permitting companies to hire the best of the best temporary foreign workers,” he wrote.

On the same day that the White House announced the new H-1B fee, the Department of Labor (DOL) 

 “Project Firewall,” a program aimed at investigating employers that are abusing the visa process.

Secretary of Labor Lori Chavez-DeRemer is expected to oversee investigations with the goal of ensuring “that highly skilled jobs go to Americans first,” she said in a statement.

 in order to participate in the H-1B program, including paying these workers a “required wage rate,” offering them working conditions and benefits that are similar to those US workers receive, and providing them a copy of the Labor Condition Application required to employ such nonimmigrant workers.

The DOL didn’t specify what types of violations it will be investigating, but said the discovery of H-1B violations could result in penalties such as being barred from using the H-1B program for a period of time.

The move seems likely to affect companies in industries like tech, engineering, and healthcare that have historically relied on the H-1B program to source talent. Prior to the imposition of the $100,000 fee, private employers 

 a $780 fee to sponsor an H-1B visa petition, 

 suggested early-stage startups may be hardest hit by the change, as they have fewer resources to absorb these new costs.

The H-1B visa shakeup is part of a broader effort by the administration to limit programs including 

, which applies to nonimmigrant workers in the agricultural sector, and 

, which previously allowed migrants from countries like Venezuela and Haiti to live and work legally in the US. Despite this crackdown, employers are still more willing to provide visa sponsorship to their workers than they were five years ago, HR Brew 

Everything HR should know about Trump’s H-1B visa shakeup 

The move seems likely to affect companies in industries like tech, engineering, and healthcare that have historically relied on the H-1B program to source highly-skilled talent. 

Legislative lowdown: Trump administration moves to curtail H-1B visa program 

The Department of Labor (DOL) recently announced its intention to roll back a number of Biden-era policies in a recently published 

Among the policies that the DOL is set to revisit are a 2024 rule for determining workers’ independent contractor status, regulations for determining joint-employer liability, and protections for nonimmigrant workers in the agricultural sector.

“This regulatory agenda reflects our steadfast commitment to restoring economic opportunity by fostering innovation and reducing unnecessary burdens on employers,” Keith Sonderling, deputy secretary of labor, said in a statement.

Here are three areas to keep an eye on as the DOL carries out its agenda.

The DOL said it intends to rescind a rule for determining independent contractor status that 

That rule restored a “multifactor economic reality test” for determining if an employee is an independent contractor, directing businesses to take into account a number of considerations, without any one factor taking precedence over another. It was expected to make it harder for companies to classify workers as independent contractors—a status that typically lacks benefits such as minimum wage, overtime, and unemployment insurance.

The DOL cited five legal challenges concerning the rule, and said it was “considering how it will proceed” with regard to this classification under the Fair Labor Standards Act going forward.

When Joe Biden was in office, the National Labor Relations Board (NLRB) tried unsuccessfully to 

 that would’ve made it easier for two businesses to be considered a joint-employer of a group of employees. It was expected to have a significant impact on franchisors and businesses that hire through staffing firms, with particular implications for union organizing efforts.

The NLRB ultimately dropped the rule after a federal judge in Texas 

Now, the DOL said it’s considering rulemaking to address circumstances when a business can be held liable as a joint employer, with an eye toward helping “promote greater uniformity among court decisions nationwide.”

 that seeks to rescind Biden-era regulations designed to enhance labor protections for agricultural workers who are employed under the H-2A visa program—typically “temporary foreign” workers under a nonimmigrant status.

The DOL is seeking to rescind a provision of a rule 

 that required employers to meet certain conditions in order to fire an H-2A worker “for cause,” as well as a section that broadened the types of workplace activities such workers may engage in without being retaliated against, among others.

In its statement, the DOL called such requirements “burdensome,” and noted that some have been blocked by the courts.

The comment period for this proposed rule ended on Sept. 2.

DOL looks to rescind Biden-era independent contractor rule 

The Department of Labor said it intends to overturn the Biden-era independent contractor rule, revisit joint-employer liability. 

Legislative lowdown: 3 areas to watch as DOL carries out its regulatory agenda 

A program providing paid family and medical leave (PFML) to Maine-based workers has been upheld by the state’s Supreme Court.

Bath Iron Works, a Navy ship manufacturer based in Bath, Maine, along with the Maine State Chamber of Commerce, sued the state’s Department of Labor (MDOL) in January. The Maine Supreme Court sided with the Department of Labor in an 

, allowing the rules for implementing the state’s PFML program to stand.

The plaintiffs argued Bath Iron Works shouldn’t be subject to mandatory quarterly taxes that started in January to fund the program, as it intends to offer a private leave program in lieu of the state-funded one. While the law establishing PFML says that employers with private plans approved by the state may be exempt from this tax, the MDOL didn’t start reviewing such plans until April. This means that in the interim, Bath Iron Works is still required to pay into the state’s PFML program.

The plaintiffs also argued the rules for implementing the state-sponsored program constitute “a taking of private property for public use” under Maine’s constitution. The Maine Supreme Court disagreed with both of these arguments.

The decision means the MDOL will continue to collect payroll contributions from employers in the state for PFML, with workers entitled to start receiving benefits in May 2026. Contribution 

 depending on the size of the employer; businesses that employ 15 or more Maine employees must contribute a premium equivalent to 1% of workers’ wages, and have the option to withhold half of that premium from workers’ paychecks.

Maine businesses that intend to provide leave benefits through a private plan, rather than the state’s program, may apply to be exempt from the payroll tax through the state’s paid leave 

. The substitute plan must meet a number of criteria to qualify for this exemption, providing benefits that are “substantially equivalent” to Maine’s PFML plan.

Most Maine workers will be eligible to take up to 12 weeks of paid leave when the program is fully rolled out next year, as the law applies to employers of any size, and extends to self-employed workers, as well. The leave can be used for a variety of reasons, including bonding with a child following a birth, fostering or adoption, as well as caring for oneself or a family member dealing with medical needs.

 in 13 states and Washington, D.C. Minnesota’s PFML program, like Maine’s, 

 from some members of the business community, but is nevertheless 

Meanwhile, the start of a paid family leave program in Maryland has been delayed several times, most recently 

 about changes affecting the federal workforce. Employers and workers are now expected to begin contributing to that program in January 2027.

Even in states that subsidize paid leave, workers still rely primarily on their employer to navigate information about these benefits, HR Brew 

. In light of this, HR leaders can educate themselves about new laws coming into effect, as well as what benefits employees are entitled to under these programs. They can also foster a culture where workers are encouraged to take time off to bond with a child, for example, as research shows some parents leave the benefit on the table due to fears of job loss or career setbacks.

Maine Supreme Court allows paid family leave to stand

A business and the state’s chamber of commerce sued over Maine’s paid family leave program, arguing employers shouldn’t be taxed if they intend to use a private option. 

Legislative lowdown: Maine’s high court upholds paid family leave program

A policy that was embraced by both the Democratic and Republican candidates during the 2024 presidential campaign made it into the final version of the recently enacted tax and budget bill, and will affect employers in the service industry starting next year.

The provision in President Donald Trump’s “One Big Beautiful Bill,” called “No Tax on Tips,” will allow eligible tipped workers to deduct up to $25,000 from their tipped income each tax year from 2025 to 2028.

The Internal Revenue Service (IRS) recently published a draft W-2 form taking this policy change into account, and said it would publish a list of occupations that may be eligible to take advantage of the tax break in early October.

How taxes will change for tipped workers in 2026. 

Federal law allows employers to pay their tipped workers as little as $2.13 an hour provided that amount, combined with tips, comes out to $7.25 (the federal minimum wage).

Workers that receive at least $20 a month in tips have to report these earnings to the IRS, and pay taxes on them if their gross income reaches a certain level. President Trump 

 this practice, as did his Democratic opponent, Kamala Harris.

The final “No Tax on Tips” provision that made it into the Republican tax bill will allow workers in jobs that “customarily and regularly received tips” on or before Dec. 31, 2024 to claim the deduction. Workers who report $150,000 or more in gross income will see the deduction reduced and ultimately phased out.

The policy is unlikely to affect the entire tipped worker population (roughly 2.5% of all workers), as more than one-third (37%) of workers 

tax for this reason, according to The Budget Lab.

What this means for employers with tipped workers. 

 published by the IRS on Aug. 15 includes a section for employers to report employees’ “qualified tips” using the code “TP,” as well as a place to report an employee’s “tipped occupation code.”

It’s not yet clear what type of work will fall under the provision. The IRS is required to publish a list of occupations that fall under the “customarily and regularly received tips” category by Oct. 2.

Additionally, the IRS is expected to give employers additional guidance on how to calculate the amount of “qualified tips” a worker earned. For the purpose of this deduction, tips paid voluntarily via cash or credit card should count, but it’s 

 whether automatic charges such as mandatory gratuities will fall under this category.

 it would provide “transition relief” to workers claiming the deduction, as well as employers, in light of the new reporting requirements.

The draft W-2 also includes modifications linked to additional provisions from the tax bill that are set to change the way employers report on workers’ earnings.

 for a tax deduction on their overtime pay, so businesses will need to report overtime compensation if they have workers that qualify for that deduction. Additionally, employers will have the option to 

 on behalf of their employees’ kids starting next year—a benefit that will also need to be reported on a W-2 form.

IRS’s draft W-2 for 2026 incorporates “No Tax on Tips”

Employers with tipped workers are set to see reporting requirements change as a result of a new tax deduction, but some details are still being worked out.  

Legislative lowdown: IRS publishes draft W-2 for 2026 incorporating “No Tax on Tips”

The recently enacted Republican budget and tax law includes a number of provisions that may prove relevant to employers with working parents in the coming years.

 with the question of how big a role the private sector should play in providing support for workers with dependents. Increasingly, employers see benefits like paid family leave and childcare support as a powerful lever for attracting and retaining talent, even if they’re not required to provide them by law.

“There has been significantly more engagement from the business community and from employers in recognizing that childcare is a retention and recruitment issue for their employees,” said Sarah Rittling, executive director of the First Five Years Fund, which advocates for federal policies to boost early learning and childcare. “It affects the entire workforce, and therefore the economy.”

Companies may see an even stronger case for providing perks such as childcare, advocates like Rittling say, thanks to a handful of 

 for employer-provided benefits coming out of President Donald Trump’s “big, beautiful bill.” But some policy experts contend these tax code enhancements don’t go far enough, particularly for industries that tend to employ low-income workers.

Rittling highlighted two sections of the tax code that her organization lobbied to make more attractive to employers and their workers.

One is a section that allows workers to set aside pre-tax dollars for dependent care expenses such as daycare and summer camp. The budget law contains a provision raising the maximum contribution employees can make to these flexible-savings accounts (FSA) from $5,000 annually to $7,500 a year. It’s the first permanent increase to the spending cap since 1986.

Another is a lesser-known section of the tax code known as 45F, the employer-provided childcare credit, which lets employers write off a certain percentage of qualified expenses they incur from giving their employees childcare.

On Jan. 1 of next year, that credit will go up to 40% of costs, for a maximum credit of up to $500,000 annually, from the current deduction of up to 25% of costs, for a credit of up to $150,000 a year. Eligible small businesses will be able to claim an even higher deduction—50%—for a maximum credit of $600,000.

Dependent care FSAs are a popular employee benefit, with more than half (54%) of employers offering them as of 2025, according to SHRM, but other types of childcare support are less common. While a handful of large employers, 

, have taken advantage of 45F to help offset the cost of programs such as onsite childcare, historically the tax credit has been underutilized. A Government Accountability Office analysis of 2016 corporate tax returns, for instance, found that 

 of businesses claimed it on their returns that year.

Rittling said she hopes more employers will take advantage of 45F now that it’s more attractive and flexible. “One of the criticisms of 45F in particular has been that it was not used,” she said. “You have to get the word out. I think it'll be interesting to learn…what employers are able to do, what kind of innovations come of that, and then how employees are benefiting from it.”

Some policy experts expressed skepticism that the budget and tax law will spur more employers to offer the types of benefits—such as paid family leave and childcare—that working families need. Vicki Shabo, senior fellow for gender equity, paid leave & care policy and strategy with the think tank New America, noted that the legislation 

 for employers that provide paid family and medical leave so multistate employers located in jurisdictions where the benefit is mandated can take advantage of it.

“But the reality is that those employers, like the really blue-ribbon employers, were already providing paid leave benefits to workers nationwide, whether they have to or not,” Shabo said. Rather than incentivize new businesses to give their workers paid family leave, the credit may simply serve as a “tax write-off” for companies that were already willing to provide the benefit, she hypothesized.

Solving the childcare crisis will ultimately require more public sector investment, argued Julie Kashen, a senior fellow and director for women’s economic justice with another think tank, The Century Foundation. In the interim, though, “it is incredibly helpful when employers step up,” she said. “To the extent that parents absolutely need these types of supports and employers are able to provide them, I think that can really help the parents who are able to access those supports.”

Speaker Mike Johnson talks about tax bill

Breaking down paid leave, childcare credits in Republican tax bill

Companies may see a stronger case for providing perks such as paid leave and childcare due to increased tax credits, but some policy experts say they don’t go far enough.